Is the Following a Positive or Normative Statement? the Federal

question 86

Short Answer

Is the following a positive or normative statement? The Federal Reserve should set an inflation target and employ policies to meet the target.

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Definitions:

Notes Payable

Notes payable refers to the written promises to pay a certain amount of money, usually including interest, by a certain date, and are recognized as liabilities on a company's balance sheet.

Interest-Bearing Note

A debt instrument that pays interest to the holder until it reaches its maturity date.

Notes Payable

Liabilities represented by formal agreements or promissory notes to pay specific amounts of money at designated times.

Interest Payable

The amount of interest expense that has been incurred (accumulated) but not yet paid as of a specific date.